Freightcar Story

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RAIL -- USA Stock  

USD 4.84  0.45  8.51%

Freightcar America Calculated Tax Rate is relatively stable at the moment as compared to the past year. The company's current value of Calculated Tax Rate is estimated at 21.56. PPandE Turnover is expected to hike to 9.64 this year, although the value of Revenue Per Employee will most likely fall to nearly 531.3 K. As some conservative investors are getting more into industrials space, Freightcar America could be a your radar. We will analyze why Freightcar America investors may still consider a stake in the business. This post is to show some fundamental factors affecting Freightcar America's products and services. I will also reveal how it may impact the investing outlook for Freightcar America in April.
Published over two weeks ago
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Freightcar America (NASDAQ:RAIL) continues to hike
About 22.0% of Freightcar America outstanding shares are owned by corporate insiders. Insiders ownership of Freightcar America refers to the amount of Freightcar America equity owned by Freightcar officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Freightcar, including its current ownership diagnostics.

How important is Freightcar America's Liquidity

Freightcar America financial leverage refers to using borrowed capital as a funding source to finance Freightcar America ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Freightcar America financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Freightcar America's total debt and its cash.

How Freightcar utilizes its cash?

To perform a cash flow analysis of Freightcar America, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Freightcar America is receiving and how much cash it distributes out in a given period. The Freightcar America cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Freightcar America Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (60.46 Million)

Breaking down the case for Freightcar America

Freightcar America retains a total of 15.53 Million outstanding shares. Over half of Freightcar America outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Freightcar America. Please watch out for any change in the institutional holdings of Freightcar America as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
 2015 2016 2020 2021 (projected)
Interest Expense243 K171 K196.65 K201.82 K
Gross Profit82.66 M40.18 M46.21 M57.98 M

Ownership Breakdown

Retail Investors
23.72%
Insiders
22.26%
Institutions
54.02%
Retail Investors23.72
Insiders22.26
Institutions54.02

Over 3 percent hike for Freightcar America. What does it mean for stakeholders?

The downside variance is down to 50.27 as of today. Freightcar America is displaying above-average volatility over the selected time horizon. Investors should scrutinize Freightcar America independently to ensure intended market timing strategies are aligned with expectations about Freightcar America volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Freightcar America's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Freightcar America's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While few other entities under the railroads industry are still a bit expensive, Freightcar America may offer a potential longer-term growth to stakeholders. All things considered, as of the 24th of March 2021, we believe Freightcar America is currently overvalued. It follows the market closely and projects below average chance of financial distress in the next two years. Our up-to-date 30 days buy vs. sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Freightcar America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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